Supply Chain Management Overview
Why is this Important?
Supply chain management is essential to EGCO Group’s sustainable business development to operate efficiently without any interruptions, support revenue growth and reduce cost, minimize risks from goods and services procurement that could affect power generation process.
Management Approach
Supply Chain Management Target
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Critical and high-risk suppliers can complete self-assessment on environmental, social, and governance (ESG) topics
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Critical and high-risk suppliers can establish their own Supplier Code of Conduct
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Meeting with suppliers at least 1 time per year
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Communicate Supplier Code of Conduct to all critical suppliers 100%
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All critical and high-risk suppliers must complete a self-assessment on environmental, social, and governance (ESG) topics 100%
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All new suppliers must sign an acknowledgment of EGCO Group’s Code of Conduct 100%
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No corruption cases in supply chain 100%
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No suppliers’ fatality rate 100%
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No violation of environmental laws by suppliers 100%
Supply Chain Management
EGCO Group has management approach for suppliers in the Company’s supply chain. This helps minimize risks potentially affecting electricity generation capacity.
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Supply Chain Management Strategy
EGCO Group is determined to have a sustainable, transparent, and fair procurement process.
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EGCO Group Supplier Code of Conduct
EGCO Group developed Supplier Code of Conduct in accordance with the 10 Principles of UNGC and internal standards to be used as guideline for our suppliers.
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ESG Risk Assessment and Integration of ESG Factors into Supplier Selection
EGCO Group selects suppliers using sustainability assessment criteria established by the Company to ensure their ability to deliver materials and services that meet EGCO Group’s standards.
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Critical Supplier and High Risk Supplier Analysis
EGCO Group uses spending volume as one of the identification factors for High-risk Suppliers as well as supplier sustainable risk assessment in category such as economic, safety, and reputation
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Supplier Audit and Corrective Action
Critical and high-risk suppliers are assessed based on their performance and risk management annually to ensure they are aligned with the Supplier Code of Conduct, related sustainability development topics, as well as related laws and regulations.
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Supplier Capacity Building
EGCO Group has been organizing supplier relation activities regularly since 2018.
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